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The market may be having a tough day, but the same cannot be said for the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.
In afternoon trading, shares of the banking giant rose more than 1% to $22.66.
This compares favorably to a 1.1% drop in the ASX 200 index.
Why is ANZ stock price outperforming?
First, ANZ’s share price was not alone in outperforming on Wednesday.
Brothers of the big four banks National Australia Bank Ltd (ASX:NAB) and Westpac Banking Corp. (ASX: WBC), as well as the regionals Bank of Queensland Limited (ASX:BOQ) and Bendigo and Adelaide Bank Ltd (ASX:BEN) are also pushing higher today.
The Commonwealth Bank of Australia (ASX:CBA) stock price is the exception with a 1% decline at the time of writing.
What’s going on?
In the absence of announcements from these banks, today’s gains could be due to news of a neobank closing.
This morning Volt Bank revealed that it was closing its depository business and intended to surrender its banking license.
There had been fears that neobanks could take market share from big banks, so this could be interpreted as positive for them.
Volt explained that he was unable to obtain funds to continue operating. He commented:
With regret, we announce that Volt will be closing its depository business and intends to surrender its banking license. Due to the pandemic and the current challenging global economic climate, we have been unable to secure the necessary funding to continue. Our priority now is to ensure that account holder funds are returned to account holders as soon as possible.